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FluidTokens Introduces First Decentralized Exchange for Runes on Bitcoin and Cardano Networks

source-logo  blockchainreporter.net 20 May 2024 13:15, UTC

FluidTokens, a Swiss-based company specializing in decentralized finance (DeFi), has announced the launch of the first decentralized exchange (DEX) dedicated to Runes. This innovative platform is designed to operate on both Bitcoin and Cardano blockchains, offering a new way for users to engage with meme coins through DeFi services.

FluidTokens Utilizes Hype Of Bitcoin Runes

FluidTokens’ new DEX provides a specialized platform for the trading and liquidity of Runes, a new type of digital asset that has been gaining traction in the crypto community. Developed by Casey Rodarmor, the mastermind behind the popular Ordinals protocol on Bitcoin, Runes are designed to enrich the Bitcoin ecosystem by allowing the creation and trade of meme coins directly on the blockchain.

The protocol was launched on April 20, coinciding with the Bitcoin halving event, which historically signals a rise in Bitcoin’s value and mining activity. This timing led to a surge in activity within the crypto market, resulting in increased transaction fees and a spike in earnings for Bitcoin miners. The launch triggered immense excitement among investors, resulting in a spike in transaction fees and unprecedented profits for Bitcoin miners, who earned over $107 million in the first week alone.

The Runes protocol provides a straightforward alternative to other Bitcoin-based protocols such as BRC-20, emphasizing user-friendliness and accessibility. By adding this protocol into decentralized exchange, FluidTokens seeks to simplify the trading of meme coins, making it easier and more efficient for users. This development is particularly important because it enables users to take advantage of the security and transparency of the Bitcoin blockchain.

BitWeave Technology Powers User-Centric DeFi Ecosystem

At the core of FluidTokens’ goals is the ambition to close the gap between traditional finance and decentralized finance (DeFi). By developing a decentralized exchange (DEX) that supports Runes and integrates smoothly with major Bitcoin wallets.

Matteo Coppola, CEO and Co-Founder of Fluid Tokens, stated that they are pleased to unveil the first 100% permissionless lending protocol supporting Runes and Ordinals, along with all major BTC wallets. He explained that this lending protocol operates independently without the need for any centralized entity or a second layer, due to their innovative BitWeave technology.

Coppola also mentioned that they are developing several additional DeFi services that will operate directly on the Bitcoin Layer.

Prior to the halving, the Runes protocol was surrounded by considerable excitement, with many predicting it would be the next significant advancement. When the halving took place at block height 840,000, it appeared that Runes would have a substantial impact on the network, as transfer fees skyrocketed to over $240.

However, the peak activity for Runes mints and transactions was observed on April 26, with thousands of etchings happening within four days. The scenario has notably changed since then. On April 30, 2024, there were 86,047 etchings recorded on the Bitcoin blockchain. In contrast, the following 18 days saw only 6,122 etchings, indicating a sharp decrease in activity.

Activity levels for printing Runes varied significantly, with the lowest occurring on May 12, where only 120 Runes were created, and the highest on May 3, with 1,203 Runes etched. By May 17, the activity had declined further, with only 143 etchings recorded.

Alongside the reduced activity, the fees charged for producing Runes have also declined. So far, Bitcoin (BTC) miners have accumulated $4.7 million in fees from Runes, with the majority of this revenue generated during the busy period from April 19 to April 30.

Meanwhile, data from Dune Analytics has highlighted a considerable slowdown in Ordinal inscriptions starting April 20, with daily inscriptions falling below 35,000. Although there was significant initial enthusiasm for Runes and Ordinals inscriptions, the data suggests that interest has faded, particularly in the month following the Bitcoin halving and the launch of the Runes protocol.